100 % FDI in Telecom Sector via Automatic Route

New Delhi Dec 21: In a move to ensure more investment flows into the telecom sector the government may consider a proposal to allow 100 % Foreign Direct Investment in the sector via the Automatic route.

Sources said that this proposal is being discussed in the
Telecom Commission which is underway and the TC may also consider a proposal to Auction the spectrum available in E-band and V-band.

Sources said that "The TC is likely to consider raising of FDI limit up to 100 percent for all telecom services including infrastructure through automatic route."

Currently, Investments above 49 percent in a company can need the approval of the department.Earlier the government had approved 100 % FDI in the sector with some restrictions.

Telecom experts said that this move would ensure that more investment would flow into the sector and the ease of doing business would be improved.

However, some feel that the government must have some mechanism to scrutinize the applications as the government has already abolished the FIPB board which was the body to scrutinize such applications.